Pakistan Allows Cotton, Yarn Imports Through Land Route

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Pakistan Allows Cotton, Yarn Imports Through Land Route

Pakistan's Economic Coordination Committee (ECC) of the Cabinet will allow the import of ccotton and yarn through land route (including from India), though it is expected that there could be some quantitative restrictions on imports from India. Pakistan's Ministry of Textile Industry had sought permission from the ECC to lift ban on import of cotton and cotton yarn from India in a bid bridge raw material shortfall for the value-added textile sector. The import of these raw materials will lead to partial revival of trade relations with India since August 2019 when Pakistan formally downgraded its trade relations. The government's decision to consider lifting of ban from India came as a big relief for the value-added textile sector which seeks access to cheap raw materials. Currently, cotton and yarn imports are allowed from all countries except India. Meanwhile, the value-added textile sector hailed the government's move. Appreciating the decision, the All Pakistan Textile Exporters Association urged the federal government to ensure energy supply to entire textile value chain at upfront tariff, gas $6.50/mmBtu and electricity at $ 0.075/Kwh if it wished to continue the momentum of textile exports. Pakistan Textile Exporters Association Chairman Khurram Mukhtar in a tweet said that import of raw cotton, yarn and grey fabric from India will bridge the gap in demand and supply. It will enable Pakistani exporters to continue growth momentum, he said.